Severe dairy market volatility returns

Tuesday’s GlobalDairyTrade auction heralded a return to severe global dairy market volatility, with prices at the benchmark auction rising at their fastest pace in seven months, two weeks after they fell to a 14-month low, writes Stephen Cadogan.

Tuesday’s GlobalDairyTrade auction heralded a return to severe global dairy market volatility, with prices at the benchmark auction rising at their fastest pace in seven months, two weeks after they fell to a 14-month low, writes Stephen Cadogan.

Dairy product prices showed their sharpest increase (2.2%) since May on Tuesday, attributed to falling supply from the world’s biggest dairy processor, Fonterra, which has cut the New Zealand milk supply forecast for the second time in as many months.